DoubleLine’s Gundlach says expect higher rates if Republicans also win the House

Published On Nov 7, 2024, 3:58 PM

Jeffrey Gundlach, CEO of DoubleLine Capital, predicts that if Republicans secure the House of Representatives, there will be an increase in government spending that may lead to higher interest rates. He believes this will result in more Treasury issuances, thus elevating bond yields. Gundlach also mentioned that while increased spending under a Republican House could worsen the already troubling national debt, it might reduce the likelihood of a near-term recession, given Trump's economic agenda.

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Expect higher interest rates and pressure on long-term yields if government spending increases significantly under a Republican-controlled House.

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